Core Viewpoint - A. O. Smith Corporation (AOS) is expected to report second-quarter 2025 results on July 24, with mixed performance indicators suggesting potential challenges and opportunities ahead [1][9]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for A. O. Smith's revenues is $987.3 million, reflecting a 3.6% decline from the previous year [2]. - The consensus estimate for adjusted earnings is 97 cents per share, indicating an 8.4% decline year-over-year [2]. Segment Performance - The North-American segment is anticipated to benefit from strong demand for commercial boilers and water treatment products, although a decline of 3.4% year-over-year to $764 million is expected due to softness in the residential and commercial water heater industry [3]. - The Rest of World segment is projected to generate revenues of $234 million, down 4.5% from the prior year, primarily due to challenges in the Chinese real estate market affecting residential water treatment and gas water heating products [4]. Cost and Acquisition Impact - A. O. Smith has faced high costs and expenses, with labor shortages and increased material costs negatively impacting performance, despite some moderation in supply-chain constraints [5]. - Recent acquisitions, such as the Pureit business from Unilever and Impact Water Products, are expected to positively influence the company's top line and enhance its position in the water treatment industry [6][7]. Earnings Expectations - A. O. Smith has an Earnings ESP of +4.48%, with the Most Accurate Estimate at $1.01 per share, suggesting a potential earnings beat despite the projected decline in EPS [8][9].

Wall Street analysts forecast that A.O. Smith (AOS) will report quarterly earnings of $0.97 per share in its upcoming release, pointing to a year-over-year decline of 8.5%. It is anticipated that revenues will amount to $987.3 million, exhibiting a decrease of 3.6% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projecti ...

A.O. Smith (AOS) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 24. On the ...

Core Viewpoint - A. O. Smith Corporation is set to release its second quarter 2025 financial results on July 24, 2025, before the market opens, followed by an investor conference call at 10:00 a.m. EDT [1] Company Overview - A. O. Smith Corporation is headquartered in Milwaukee, Wisconsin, and is recognized as a global leader in innovative technology and energy-efficient solutions for products marketed worldwide [2] - The company is a leading manufacturer of residential and commercial water heating equipment, boilers, and water treatment products, and is listed on the New York Stock Exchange under the ticker symbol AOS [2]

Bob Heideman to retire after 29 years with the companyMILWAUKEE, July 1, 2025 /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS), a leader in water heating and water treatment, announced today that Ming Cheng, will become A. O. Smith's next senior vice president and chief technology officer. He replaces Bob Heideman, who has been with the company in different capacities since 1994. Cheng, who was most recently senior vice president of research and development for the Transportation and Electronics Business ...

Core Insights - A. O. Smith Corporation has been recognized by USA Today and Statista as one of America's Climate Leaders for the second consecutive time, highlighting its commitment to reducing carbon intensity [1][2] - The company achieved a 12% reduction in Scope 1 and Scope 2 greenhouse gas emissions intensity from 2021 to 2023, surpassing the minimum requirement of a 3% year-over-year reduction to qualify for the list [2][6] - A. O. Smith's sustainability efforts are deeply integrated into its corporate values, focusing on innovation and corporate citizenship [3] Sustainability Efforts - The company has made significant strides in sustainability over the past two years, including the announcement of its first public enterprise-wide water goal, which emphasizes administrative controls, process optimization, and water recycling technologies [7] - Continuous innovation in water heating and treatment technologies aims to position A. O. Smith as an industry leader in energy and water efficiency, consistently exceeding regulatory standards [7] - A. O. Smith is committed to providing empirical information to policymakers to facilitate positive changes in environmental practices [7] Company Overview - A. O. Smith Corporation, headquartered in Milwaukee, Wisconsin, is a global leader in innovative technology and energy-efficient solutions for water heating and treatment products [5] - The company is listed on the New York Stock Exchange (NYSE: AOS) and is recognized as one of the leading manufacturers of residential and commercial water heating equipment and boilers [5]

Core Insights - Stepan Company has announced a 25% increase in its production capacity for Alpha Olefin Sulfonates (AOS) through strategic capital investments and process improvements [1][2][4] - The company operates the broadest network of AOS production sites in North America, enhancing operational efficiency and reliability for customers [2][4] - AOS is a versatile surfactant used in various applications, including detergents and personal care products, and is increasingly preferred due to its environmental benefits and suitability for sulfate-free formulations [3][4] Company Overview - Stepan Company is a major manufacturer of specialty and intermediate chemicals, particularly known for its surfactants used in cleaning, agricultural, and oilfield solutions [5][6] - The company is headquartered in Northbrook, Illinois, and has a global production network across North and South America, Europe, and Asia [6]

Core Insights - A.O. Smith shares have declined approximately 5.4% since the last earnings report, underperforming the S&P 500 [1] - There is uncertainty regarding whether this negative trend will continue or if a breakout is imminent [1] Estimates Movement - Estimates for A.O. Smith have trended downward over the past month [2] VGM Scores - A.O. Smith has an average Growth Score of C, a Momentum Score of B, and a Value Score of B, placing it in the top 40% for the value investment strategy [3] Outlook - The downward trend in estimates suggests a negative shift, with A.O. Smith holding a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [4]

Core Viewpoint - A. O. Smith Corporation (AOS) is experiencing growth through strategic acquisitions and investments in research and development, while also rewarding shareholders with dividends and share repurchases [1][5][6]. Group 1: Company Overview - A. O. Smith is a leading manufacturer of commercial and residential water heating equipment and water treatment products, focusing on innovative and energy-efficient solutions sold globally [2]. Group 2: Expansion Efforts - In November 2024, AOS acquired the Pureit business from Unilever, which is expected to contribute approximately $50 million to sales in 2025, enhancing its position in the water treatment industry in India [3]. - The acquisition of Impact Water Products in March 2024 expanded AOS's water treatment footprint in North America [4]. Group 3: Investments in R&D - AOS is investing in R&D and manufacturing efficiency, including a new gas tankless water heater manufacturing facility in Juarez, Mexico, to mitigate tariff charges [5]. - The company unveiled a commercial R&D testing lab facility in Lebanon, TN, in Q1 2025 to boost production capacity for water heaters and boilers [5]. Group 4: Rewards to Shareholders - In Q1 2025, AOS paid dividends of $49.2 million, a 4% increase year over year, and repurchased 1.8 million shares for $120.6 million [6]. - The dividend was increased by 6% to 34 cents per share in October 2024, with plans to repurchase shares worth approximately $400 million in 2025 [6]. Group 5: Business Challenges - AOS is facing challenges with lower volumes in residential water treatment and gas water heaters in China, leading to flat revenues in the Rest of the World segment in Q1 2025 and a 9% decline year over year in Q4 2024 [9]. - The North America segment also saw a 7% decline in sales year over year in Q1 2025 due to reduced orders for water heater products [9]. - Adverse foreign currency movements impacted the Rest of the World segment's revenues by $2 million in Q1 2025 and $13 million in 2024 [10].

Financial Performance - In Q1 2025, the company reported net sales of $963.9 million, a decrease of 1.0% from $978.8 million in Q1 2024, primarily due to lower residential and commercial water heater volumes in North America and lower sales in China [79]. - The gross profit margin for Q1 2025 was 38.9%, down from 39.3% in Q1 2024, attributed to lower sales volumes [80]. - The North America segment's net sales were $748.7 million in Q1 2025, a decline of 2.3% from $766.3 million in Q1 2024, driven by lower water heater volumes [83]. - The Rest of World segment's net sales were $226.7 million in Q1 2025, essentially flat compared to $226.9 million in Q1 2024, impacted by lower volumes in China [85]. - The company expects consolidated sales in 2025 to be flat to up 2% compared to 2024, with projected earnings per share between $3.60 and $3.90 [87]. Cash Flow and Debt - Cash provided by operating activities in Q1 2025 was $38.7 million, significantly lower than $106.6 million in Q1 2024, primarily due to lower accounts receivable collections [89]. - Free cash flow for Q1 2025 was $17.4 million, down from $84.6 million in Q1 2024 [96]. - Total debt increased by $76.6 million in Q1 2025, with a leverage ratio of total debt to total capitalization at 12.7% [92]. Acquisitions and Restructuring - The company acquired Pureit for approximately $125 million, contributing $12 million to sales in Q1 2025 and expected to generate annual sales of about $50 million in 2025 [72]. - The company recognized restructuring and impairment expenses of $17.6 million in 2024, including $11.3 million in severance expenses in China [74]. - Restructuring and impairment expenses for 2024 include $11.3 million in the Rest of World segment and $6.3 million in the North America segment [97]. Guidance and Risks - 2025 diluted EPS guidance is projected to be between $3.60 and $3.90, with 2024 adjusted EPS reported at $3.73 [97]. - Forward-looking statements highlight risks including international tariffs, inflationary pressures, and potential recession impacts on demand for products [100]. - The company is exposed to market risks such as currency and commodity risks, with ongoing monitoring and use of forward and futures contracts to mitigate these exposures [101]. Accounting Policies - The company emphasizes the importance of critical accounting policies that may significantly affect reported results, as detailed in the Annual Report for the year ended December 31, 2024 [98].